BRAND MANAGEMENT & MERCHANDISING
Dr, VALENTINA KIROVA (PhD)
2023 - 2024
Associate professor, Marketing
Department
Excelia Group
CERIIM – In charge of
Module: MKGMKGM1S0326
Group:BBA4_2324_LR_CL_S1_DO
M_SMGT
Master degree
Excelia Business School
Agility Innovation Digitalization research
axis
kirovav@excelia-group.com
SYLLABUS
Working language : English
Volume of hours : 21 h
Evaluation : Final exam (60% of the final
grade) and a continuous exam (40% of the
final grade).
Final exam: compulsory reading question
(4/20) and case study (16/20).
Continuous assessment based on an oral
group presentations
Learning objectives
At the end of this lecture, the students will be
able to :
- Understand the principles of building a brand
and brand communication
- Analyze the concepts and tools of brand
management
- Identify company’s branding strategies
- Assess and justify the components for
effective brand management
SCHEDULE
15-sept
09h00 - 12h00
3
lecture + tutorial
22-sept
13h30 - 15h30
2
lecture + tutorial
25-sept
10h00 - 12h00
2
29-sept
09h00 - 12h00
3
06-oct
09h00 - 12h00
3
dist
lecture
tutorial
dist
presentations
REFERENCES
Aaker, D. A. (2010). Building strong brands.
London: Pocket Books.
Burmann C., Riley N-M., Halaszovich T., Schade
M. (2017). Identity-Based Brand Management,
Springer
Kapferer, J. N. (2012). The new strategic brand
management – advanced insights & strategic
thinking. London: Kogan Page.
Keller, K. L. (1993). Conceptualizing,
measuring, and managing customer-based
based brand equity. Journal of Marketing, 57,
1–22.
Keller, K. L. (2013). Strategic brand
management – building, measuring, and
managing brand equity. Essex: Pearson.
Pine, B. J., & Gilmore, J. H. (1999). The
experience economy—Work is theatre and
every business a stage. Boston: Harvard
Business School Press.
COURSE OUTLINE
INTRODUCTION
Chapter 1. BRAND IDENTITY
Chapter 2. BRAND IMAGE
Chapter 3. BRAND ARCHITECTURE
Chapter 4. BRAND EVOLUTION
INTRODUCTION
• Brand management
objectives
• Businesses that invest in
and sustain leading brands
grow whereas those that
fail are left to fight for the
lower profits available in
commodity markets.
Strong identity
Emotional attachment
Feeling of involvement
Sense of higher quality
Interbrand best global brands 2022
INTRODUCTION
Brand definition
The American Marketing Association (AMA)
“A name, term, sign, symbol, or design,
or a combination of them which is
intended to identify the goods or
services of one seller or a group of
sellers and to differentiate them from
those of competitors.”
https://www.youtube.com/watch?v=RBTiTcHm_ac&feature=emb_logo
INTRODUCTION
Brand definition
Keller (1993)
A brand as “a bundle of functional and nonfunctional benefits which, from the target groups’
point of view, differentiate the brand from
competing offers in a sustainable way.”
INTRODUCTION
Different components of brand value
Reputation value
Stories imply
perceived quality of
product features
Relationship value
Stories imply that the
firm is a long term
partner that will attend
to customer interests
Experiential value
Stories shape
experience of the
product
The Product
(objective features,
quality standards)
Symbolic value
Stories imbue the
product with value and
identities
INTRODUCTION
What is Branding?
Branding is the business process of managing
firm’s trademark portfolio so as to maximize
the value of the experiences associated with
it, to the benefit of key stakeholders,
especially current and prospective
(employees, customers, shareholders,
suppliers, intermediaries, opinion leaders,
local communities, purchasers and licensees)
INTRODUCTION
Branding History:
Neil H. McElroy P&G memo
• The shift to brand management began in 1931 with an internal P&G memo from Neil McElroy
• While working on the advertising campaign for Camay soap, McElroy became frustrated with
having to compete not only with soaps from Lever and Palmolive, but also with Ivory, P&G’s
own flagship product.
 In a now-famous memo, he argued that more concentrated attention should be paid to
Camay, and by extension to other P&G brands as well.
 There should be a substantial team of people devoted to thinking about every aspect of each
brand.
INTRODUCTION
Brand = “Mind Set”
Product = Commodity
Brand
= “Mind
The
sum
of all Set”
communications and
experiences received by the consumers and
A product is a produced item always possessing The sum of all communications and experiences
resulting in a distinctive image in their “mind
these characteristics:
received
by on
the perceived
consumers emotional
and resulting
in a
set”
based
and
distinctive image
in their “mind set” based on
functional
benefits
• Tangibility
perceived emotional and functional benefits
• Attributes and Features
INTRODUCTION
Therefore the concept of “Brand” and the concept
of “Product / Service” are closely related
Brands : impossible to develop a brand without a
product/service
Brand usually concerns a business product line or
largely product portfolio.
Example: Samsung: smartphones, televisions,
tablets, etc.
Product mix relates to the total set of products
marketed by a business
INTRODUCTION
Product mix decisions
Product mix width : number of different
product lines the company carries.
Product mix depth : number of versions
offered for each product in the product
line.
Product mix length : number of items a
company carries within the product
lines.
Customer need ≠ Customer choice
https://www.youtube.com/watch?v=KhRd
0MSmgfQ
INTRODUCTION
Consistency refers to how closely related the product
lines are in terms of:
end use
production requirements
distribution channels
Diversification: product mix targets a large number
of customers, however, requires much attention and
individual strategy and management (e.g. Danone)
Specialization: narrow product mix easier for
businesses to operate and manage, but reduces the
ability to reach out to diverse markets (e.g. Agrial
with the brand Soignon)
Chapter 1.
BRAND IDENTITY
Chapter 1. BRAND IDENTITY
BRAND IDENTITY ≠ BRAND IMAGE
• The internal perspective (brand identity) as a distinct
bundle of benefits is determined by the brand owner
and communicated to its external target groups
through brand touch points.
• The actual brand perceptions (brand image) are
captured by the external perspective.
Ideally, the perceived bundle of benefits matches the
internally defined bundle of benefits.
The perceived degree of differentiation between a
brand and the competitors’ brands is another
component of the external perspective.
Chapter 1. BRAND IDENTITY
The design of the brand identity as the internal side
of a brand and the resulting external brand image for
the consumers constitute the foundation of every
brand that is successful in the long term.
A unique and differentiating positioning is a great
challenge in mature markets. Without such a
positioning, the long-term retention of consumers by
the brand is significantly impeded.
Chapter 1. BRAND IDENTITY
Identity = inside-out perspective
Image = outside-in perspective
Identity : The self-perception of the brand is
determined by the internal target groups of the
institution which owns the trademark.
Identity is designed by the company itself
Image among various external target groups
develops only over time.
Hence the resulting brand image is an indirect
reaction to internal brand management efforts.
Chapter 1. BRAND IDENTITY
Therefore, brand identity
precedes brand image.
Hence “before projecting an image to
the public, we must know exactly what
we want to project” (Kapferer 2012).
The brand identity is transmitted by
various messages in the form of the
brand name, visual symbols, products,
advertisements, sponsoring or
patronage.
https://www.youtube.com/watch?v=j73
TZuaYu2Q
Sensory branding
Brand symbolic identity
Touch
Sound
Smell
Sight
Taste
Identification elements : 99% of all brand communication
focuses on sight and sound (sense of hearing)
Name
Logo
Design
Jingle
Advertising character
Chapter 1. BRAND IDENTITY
Sensory
branding
example
Chapter 1. BRAND IDENTITY
Brand identity according to Aaker
(1999)
“Brand identity is a unique set of
brand associations that the
brand strategist aspires to create
or maintain. These associations
represent what the brand stands
for and they imply a promise to
customers from the members of
its organization” (Aaker 1996).
Four dimensions of the brand identity (Aaker, 1999)
Chapter 1. BRAND IDENTITY
According to Aaker (1996), brand identity should
help establish a relationship between the brand and
external target groups by generating a value
proposition delivered by the brand that provide
value to the customer :
- Functional benefits
- Emotional benefits
- Self-expressive benefits
=> A brand should consider all these perspectives
and use the ones which are most helpful in
communicating what the brand should stand for in
the consumer’s mind.
Chapter 1. BRAND IDENTITY
Kapferer’s (2012) approach of brand
identity:
Brand identity represents the
sender’s side and specifies the
meaning of the brand, its aim and
self-image (Kapferer 2012).
Kapferer Brand Identity Prism tells
us how to build a story and give the
brand a much needed identity
considering six important facets of
brand identity.
Six dimensions of the brand identity prism (Kapferer, 2012)
Chapter 1. BRAND IDENTITY
1.“Physique” - Physical specificity and
quality of the brand
2.“Personality” - how the brand speaks
about its products or services, showing
what kind of person the brand would be as
a human
3.“Culture”- which Kapferer considers the
most important facet of brand identity
because it spells out the ideology and vision
of the brand.
4.“Relationship” - brand is often the crux of
transactions and exchanges between people.
5.“Reflections” - most brands build an image
of their buyers or users, such as when a
particular brand is “for young people”.
6.“Self-image” of consumers - brands
contribute towards the creation of an image of
oneself (owners of a Porsche, purchasing a
Porsche proves that they can afford to buy
such a car).
Chapter 1. BRAND IDENTITY
Chapter 1. BRAND IDENTITY
https://www.youtube.com/watch?v=ht3F090Rx3E
Chapter 2.
BRAND IMAGE
Chapter 2. BRAND IMAGE
Brand image is the “consumers’ perception about a
brand, as reflected by the brand associations held in
consumer memory”
 Associations consumers hold in their minds when
they think of your brand.
 The brand image is a condensed concept which is
firmly rooted in the minds of the relevant
external target groups.
 Brand image is one of the dimensions brand
knowledge (along with awareness)
Chapter 2. BRAND IMAGE
The first step
towards
establishing a
strong brand
image is to
generate a
sufficient level of
brand awareness
(cf. Keller 2013)
Chapter 2. BRAND IMAGE
Brand knowledge has 2 dimensions : brand
awareness and brand image (Keller 2013):
Brand awareness is when people recognize your
brand as yours.
The first dimension of brand knowledge is relative
to brand awareness
Brand awareness consists of brand recognition
and brand recall
Brand recognition : consumers’ ability to confirm
prior exposure to the brand when cued with the
brand
Brand recall : consumers’ ability to retrieve the
brand from memory when given a cue such as the
product category
This does not necessarily mean they prefer your
brand (brand preference), attach a high value to, or
associate any superior attributes to your brand, it
just means they recognize your brand and can
identify it under different conditions
Chapter 2. BRAND IMAGE
Different levels of Brand awareness
Spontaneous brand awareness is indicated by the
percentage of consumers that name your brand by
being assisted in the given category.
Aided awareness occurs when you show or read a
list of brands and the person expresses familiarity
with your brand only after they hear or see it.
Top-of-mind awareness occurs when you ask a
person to name brands within a product category
and your brand pops up first on the list.
• Brand awareness is a precondition for establishing
a brand image among external target groups.
• It measures a person’s ability :
• to recall a brand symbol, such as a trademark,
logo or some combination thereof (i.e. brand
recall)
• to recognize it when stimulated with acoustic or
visual aids (i.e. brand recognition)
• to assign the brand to a product category
 With a sufficient level of brand
awareness, brand managers can start to
strengthen the brand image
Chapter 2. BRAND IMAGE
Chapter 2. BRAND IMAGE
Definition: “A brand image is a multidimensional
attitudinal construct which represents the
perceptions of the brand in the mind of external
stakeholders.”
 A brand enjoys a strong image when associations
with it are strong, favorable and unique.
 These associations can be product and nonproduct related brand attributes (i.e. features
that characterize a product or service) and brand
benefits (i.e. meanings that consumers attach to
product or service attributes).
Chapter 2. BRAND IMAGE
• The brand image encompasses
different attributes giving birth to two
key components : functional and nonfunctional brand benefits for the
individual consumer.
• The functional brand benefit
perceived by consumers is primarily
based on their knowledge of the
brand’s products, services and
competences.
• In contrast, non-functional brand
benefits derive primarily from the
brand’s personality, values or vision.
Chapter 2. Brand image
The functional benefits can be further divided into :
utilitarian benefits : based on the physical and
technical characteristics of the brand offering
economic benefits: based on the cost–benefit ratio
and the financial consequences for the consumer
as a result of using this brand.
Example:
Utilitarian benefit of a BMW is that it provides
transportation from one location to another, but it
also includes the specific characteristics of the car,
such as its driving dynamics.
Economic benefits: Driving a BMW, this would
include maintenance and fuel costs.
Chapter 2. Brand image
Non-functional brand benefits become increasingly
important for the creation of a sustainable and
differentiating brand image.
This element is especially relevant in saturated
and mature markets.
Non-functional benefits emerge if a brand is able
to offer an additional benefit unrelated to its
functional benefits.
Non-functional brand benefits comprise social and
individual benefits.
• Consumers perceive social brand benefits if the
brand is able to satisfy their needs for esteem,
group affiliation, and self-expression in a social
context.
• Individual intrinsic brand benefits encompass a
sensual/aesthetic brand benefit and a hedonic
brand benefit.
• Aesthetic - the need for beauty (attractive
external and internal design of a car).
• The latter fulfils the consumer’s need for
personal fulfilment, passion, pleasure, and
cognitive and emotional stimulation.
Chapter 2. Brand image
Conclusion
In contrast to brand identity, a brand image cannot be
influenced directly by brand management.
It depends on dynamic interaction processes that take place
while transmitting the brand promise to external
stakeholders.
This interaction is influenced :
• by the activities of the brand (activities of both the
management and the employees),
• by consumers (e.g., online and offline recommendations,
comments by opinion leaders),
• by the reactions of competitors and by environmental
conditions.
Chapter 3.
BRAND
ARCHITECTURE
Chapter 3. BRAND ARCHITECTURE
Context : Many companies own several brands (brand
portfolio) => these brands have to be coordinated within
the framework of a brand architecture.
Brand portfolio : the brands which a company is allowed
to use as the brand owner or due to contractual
agreements (license, alliance)
Definition
Brand hierarchy refers to the allocation of the portfolio’s
brands to the organizational levels of a company:
• company level
• business area level
• product group level
Chapter 3. BRAND ARCHITECTURE
Chapter 3. BRAND ARCHITECTURE
The Process of Brand
Architecture Design
- The vertical
dimension is based
on the “brand
relationship
spectrum”
- The horizontal
brand architecture
dimension refers to
the number of
brands offered by a
company in each
market segment.
Chapter 3. BRAND ARCHITECTURE
The Vertical Dimension of Brand Architecture
• A branded house architecture (also often referred
to as “corporate branding” or “umbrella
branding”)
• The hierarchically superior umbrella brand
dominates the market presence and the influence
of any inferior brands is reduced to a minimum.
• All products and services of a company are
marketed under a single umbrella brand.
Chapter 3. BRAND ARCHITECTURE
The Vertical Dimension of Brand Architecture
• A house of brands represents the other end of the
vertical dimension, in which every product brand
shapes its own market presence.
• Hybrid forms
• Sub-brand as a co-driver the hierarchically
superior and subordinate brands appear equal
(e.g. Gillette Venus, Sony PlayStation, Adidas
Originals)
Chapter 3. BRAND ARCHITECTURE
The Vertical Dimension of Brand Architecture
Hybrid forms
A sub-brand architecture features a dominant, umbrella
brand, which provides the main driving force in purchasing
decisions, whilst hierarchically subordinate brands also
have more than just purely descriptive roles
• Master-brand as a driver : the focus is on the superior
brand - Kinder: Kinder Surprise, Kinder Chocolate, Kinder
Joy
• Strong sub-brand this strong product brand is combined
with a dominant, hierarchically superior umbrella brand
(Chanel No. 5)
Chapter 3. BRAND ARCHITECTURE
The Vertical Dimension of Brand Architecture
Hybrid forms
An endorsed brand architecture - the subordinate brands
dominate the hierarchically superior brand; in this case the
umbrella brand has a purely supporting role (KitKat Nestlé).
• The product brand is the main driving force in purchasing
decisions.
• A weak, token endorsement makes only a symbolic reference to
the hierarchically superior brand (Ristorante by Dr. Oetker),
• A strong endorsement offer comprehensive support from the
hierarchically superior brand (Persil by Henkel)
Chapter 3. BRAND ARCHITECTURE
Depending on the various courses of action
along this vertical dimension, suitable
evaluation criteria have to be identified
Both the corporate brand image and the
product brand image have significant positive
impacts on consumers’ purchasing behavior
The effects of corporate brand image and
product brand image on purchase behavior.
(Source: Kanitz 2013)
Chapter 3. BRAND ARCHITECTURE
The Horizontal Dimension of the Brand Architecture
• Single brand strategy : each brand is geared towards a specific
market segment (Pampers, Nutella)
• Multi-brand strategy : at least two brands of the same
company serve an identical market segment.
• A multi-brand strategy can be advantageous when dealing with
larger, heterogeneous market segments.
• Financial strength is required to establish multiple brands, as is
comprehensive know-how of brand management to achieve
credible differentiation.
• Furthermore, multi-brand approaches incur substantial risks of
cannibalization if the brands are not very clear cut.
Chapter 3. BRAND ARCHITECTURE
The Lateral Dimension of Brand Architecture
The lateral dimension of brand architecture design determines
whether a company produces only its own brands or, additionally
or exclusively, products for some other companies.
- a company can produce brands for direct competitors or
private-label brands for retailers
- Due to the increasing market share of large retailer groups,
manufacturing of private-label products is becoming
increasingly important.
- Private label brands Private label brands are those brand names
which are used by a trading company, such as a retailer, to
identify selected products which are distributed exclusively in
its own sales outlets.
Chapter 3. BRAND ARCHITECTURE
Main conclusions
• Brand architecture as subjectively perceived
by the consumers can differ from the brand
architecture implemented by the company.
The perceived brand architecture is crucial
because it determines the consumers’
behavior
• The objectives of brand architecture design
aims to create internal synergies and to
make optimum use of the demand potential
in the markets in which the company
operates
The Brand architecture has to be
coordinated in a coherent manner so that
the identity of the company brand and the
identities of the other brands blend well.
Chapter 4.
BRAND EVOLUTION
Chapter 4. BRAND EVOLUTION
Brand evolution adopts a long-term perspective,
dealing with decisions over time.
• Brands must be developed further over time due to
changing market and business conditions
• Brand evolution must be individually planned and
implemented for each brand in contrast to brand
architecture, which refers to all brands within a
portfolio (e.g. Audi, Volkswagen, Škoda, SEAT,
Porsche).
• Brand evolution aims to ensure topicality and
comprises the measures which are continuously
implemented in brand management with the aim of
being perceived as modern and up-to-date.
Exemple : Adidas will select some “trendy retailers” and
flagship stores
Chapter 4. BRAND EVOLUTION
Brand Restructuring : Various
options of brand restructuring
(Burmann et al. 2017)
Chapter 4. BRAND EVOLUTION
Brand Consolidation (1)
Context
• Companies face stagnant and declining markets
(example: video rental market).
• Over-complexity of many brand portfolios resulting from
mergers and acquisitions hinders a company’s expansion
As a consequence, companies are scaling down their
brand portfolio.
A brand consolidation strategy should be used if the
resources which are tied to a company’s brand can be
used more efficiently for other activities, thus improving
the company’s long-term competitive position.
Unilever strategy “Path to Growth” : brand portfolio
reduction from 1600 brands in 2000 to 400 brands by
the end of 2004.
More than 1000 of the 1600 brands accounted for only
8% of Unilever’s total turnover.
Chapter 4. BRAND EVOLUTION
For a brand consolidation strategy, three options are
available:
• immediate withdrawal
• gradual withdrawal
• employing a migration strategy
Reasons for the “consolidation trend” can be
assigned to four market trends:
• Market saturation => competitive pressure
• Profitability pressure => shorter product life cycles
• Popularity of private labels => branded goods are
becoming less important
• The pressure of globalization => alignment of
lifestyles
Chapter 4. BRAND EVOLUTION
Immediate Withdrawal (1.1.)
The brand is removed from the market as quickly as
possible.
This strategy should be chosen if a brand’s cash flow
is strongly negative, and, more importantly, has a
negative impact on the company’s brand image
(medication Mediator Servier).
Eliminating brands can free up resources which can
then be used in the long term to support other
brands.
Chapter 4. BRAND EVOLUTION
Gradual Withdrawal (1.2.)
• The number of loyal customers and the potential cost
savings are still large enough to ensure a sufficient return
on assets in the short to medium-term.
• To this end, specific disinvestments are made:
• Cutback in the brand’s communication budget and a
reduction in sales-supporting measures.
• Reduction of the number and types of products under
the brand
• Reduction of the level of customer service provided.
Mammouth was a
French hypermarket
brand owned by the
Docks de France
group. In 1996, Docks
de France was bought
by the Auchan group,
the Mammouth
brand then gradually
disappeared and
closed its last
hypermarket in 2009.
Chapter 4. BRAND EVOLUTION
Brand Migration (1.3.)
• In the case of a migration strategy, a brand’s offer
remains mostly unchanged on the market, but the
trademarks used so far are replaced by another
label.
• It is used within an internationalization strategy
in order to replace national brands with
international ones.
• The American company Mars Inc. substituted
the brand name “Raider”, which was only used
in Germany, with the internationally employed
label ‘Twix’ (for a chocolate bar).
Chapter 4. BRAND EVOLUTION
Brand Extensions (2)
• Brand extension strategies refer to the expansive
restructuring of brands.
• These business activities aim to transfer the positive
image of an existing brand to new products.
Advantages
• Quickly build brand awareness and positive images
Empirically, there are four determinants of successful
brand extensions:
• the fit between the new product and the core brand
• the marketing support for the extension
• the retailers’ acceptance of the new product
• the consumers’ involvement in the core brand
Chapter 4. BRAND EVOLUTION
• The new products may belong :
• to a category already covered by the firm’s
portfolio or to related categories;
• to completely new categories.
• Line extensions : line extensions refer to the extension of a
brand into the same or closely related product categories
• Category extensions: category extensions imply the
extension of a brand into new, unrelated product categories
• Geographical extensions: international brand management
Chapter 4. BRAND EVOLUTION
Chapter 4. BRAND EVOLUTION
Line extensions:
• Increase the number of products and services
offered by a brand within a product category
already covered by the brand.
• 80–90% of all new product launches are line
extensions.
• Example: extension of Nivea Creme to Nivea Milk.
Similarly, Milka used this approach to extend its
chocolate bar brand to different chocolate
products (Milka Tender, I love Milka, Crispello and
M-Joy).
Chapter 4. BRAND EVOLUTION
Category extensions:
•Seek to move a brand into new markets that have no or
have little technical or functional connection to the brand’s
core market
•Example: Camel beyond tobacco is present into the male
fashion and watch markets
•Example: Apple, which has extended its brand to consumer
electronics (iPod 2002, Apple TV 2007), mobile phones
(iPhone 2007), and interactive watches (Apple Watch 2015).
=> The key requirement for a successful category extension
is the fit between the core brand and the extension.
CONCLUSION
Actual market trends in branding:
- Stakeholder pressure to adopt a CSR
Orientation
- Leading brands' green efforts
https://www.youtube.com/watch?v=ZNkfcd-R2IA